Transcript

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>> Police in Australia are blaming a known terrorist for a deadly stabbing in the city of Melbourne. At least one person is dead after a man stabbed three people in the city center on Friday, before being shot by police, the attacker later died.

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deo uploaded to social media, showed a car in flames and emergency vehicles, blocking one of the city's major shopping precincts.

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>> So this is happening right now out in front of my house. Some one has driven a car that's exploded right out there from my house. This is full on.>> Police said late on Friday that a counter terrorism investigation was under way. Saying earlier that they had initially responded to reports of a car on fire.

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But when they arrived on the scene, they found a man with a weapon. Nearby police quickly responded to the incident, as they got out of the car, they were confronted by a male, brandishing a knife and threatening them. Police shot male in the chest.>> Police also said the bomb response unit had been called in after the incident.

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A local newspaper reported the Melbourne Central Business District was in lock down. And the city's anti-terror loudspeaker system has been activated for the first time, with the a message warning people to leave the city center.